Broadly syndicated Golub CLO prints; Marathon refinances $463.17 million; CLOs active

By Cristal Cody

Tupelo, Miss., Aug. 20 – Primary and refinancing supply in the U.S. CLO markets remains steady in late August, though volume is beginning to thin.

Golub Capital affiliate GC Investment Management LLC priced $435.16 million of notes due July 2030 in a new broadly syndicated transaction. The company’s second new middle-market CLO deal of the year closed earlier in August.

In refinancing activity, Marathon Asset Management LP sold $463.17 million of notes in a reset of a vintage 2015 CLO.

In the secondary market last week, CLO bonds on BWIC lists “traded well, aided by a second straight week of relatively light primary market volume,” according to a BofA Merrill Lynch research note released on Monday.

“The wings of the capital structure were particularly well bid, with AAA/AA tranche spreads 3 [basis points] and 5 [bps] tighter [week over week], respectively, and BB/B spreads 5 [bps] and 10 [bps] tighter,” the note said.

CLO AAA-rated tranches are trading about 7 bps tighter in the Libor plus 105 bps area than the widest levels seen this year in mid-July, according to the market note. BB spreads, at the Libor plus 560 bps area, are about 50 bps tighter in the secondary market from the year’s wides.

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